A pedestrian holds an umbrella as he walks along a street in the rain in Times Square, New York, on September 26, 2023.
Ed Jones | AFP | Getty Images
The US labor market finished the year strong, creating more than 200,000 jobs in December, according to figures released Friday by the US Bureau of Labor Statistics. While previous job creation estimates for October and November were revised downward by 75,000 jobs, the unemployment rate remained at a low level of 3.7%, and December marked the thirty-sixth consecutive month of job creation for the US economy.
In total, the United States created nearly 2.7 million jobs in 2023, when adjusted seasonally. This figure came despite concerns that the Federal Reserve's ongoing war against inflation by raising interest rates may cool the labor market and curb consumer spending.
But none of these fears came true. In fact, consumer spending remained strong throughout the year, with advanced monthly retail sales remaining above the $600 million mark for most of 2023, proving that despite numerous economic headwinds, American consumers cannot be deterred.
Here are nine more charts showing how the economy will end in 2023.
While inflation remains top of mind for US consumers, the inflation rate fell significantly in 2023. Meanwhile, wages rose throughout the year, eventually outpacing price increases.
American consumers were in the mood to spend, especially on experiences: 2023 was officially the year travel picked up, with the Thanksgiving holiday period shattering American records. The Transportation Security Administration screened nearly 150 million passengers through US airports in November and December.
Americans also spend on entertainment. With big hits like “Barbie,” “Oppenheimer” and Taylor Swift’s concert film “The Eras Tour,” the U.S. box office made a major comeback last year from its COVID-19 pandemic lows.
Even assets like cryptocurrencies saw a rebound in 2023 after bottoming out in November of the previous year. Bitcoin prices ended the year at nearly three times this previous low.
After its historic interest rate hikes in 2022, the Fed has eased its war on inflation and will only raise interest rates at four of its eight meetings in 2023. While the central bank's target range for interest rates is the highest since 2006, recent comments Chairman Jerome Powell has Fed watchers optimistic that interest rate cuts may be coming in 2024.
However, there were some problems for consumers. Mortgage rates remain high. The average 30-year fixed price in October was nearly three times what it was at the end of 2020 — though prices fell significantly by the end of the year — and existing home sales remain low, according to data from the National Association of Realtors. Until more housing stock is available, these issues are likely to continue into 2024.
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